There is a multitude of sources of information about publicly traded companies. For example, a publicly traded company has to comply with certain disclosure rules, so a great deal of information about the company can be found in U.S. Securities and Exchange Commission (“SEC”) filings. Other factual information about the company can be found in news articles, press releases, and other readily available sources of information. Yet more information can be obtained through more complex processes, such as by making Freedom of Information Act (“FOIA”) requests. All of this information can be relevant to investors and analysts as they seek to assess the risk of investing in a company.
While all of this information is available, collection of the information can be difficult. Also, even if the information is collected, deriving relevant facts from the information can be difficult. For example, SEC filings can be hundreds of pages in length, and it can be difficult to understand where relevant facts are contained within such filings. Further, even when the relevant facts can be found, it is difficult to analyze the various facts to create an overall assessment of the risks involved in investing in a company.